Sumitomo Realty & Development CoFRA:RL2 +1.08%78 Operating Margin % is 21.81% as of Mar. 2026, which is 11% below its 10-year median of 24.40. GuruFocus rates FRA:RL2 with a GF Score™ of 78/100 and a GF Value™ of €15.00 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,745 Real Estate companies, Sumitomo Realty & Development Co ranks better than 70.77% on this metric.
Sumitomo Realty & Development Co (FRA:RL2) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Sumitomo Realty & Development Co Operating Margin % Related Terms
Sumitomo Realty & Development Co Operating Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sumitomo Realty & Development Co Operating Margin % Chart
FRA:RL2 vs CBRE, BEKE, CSGP: Operating Margin % Comparison
For the Real Estate Services subindustry, Sumitomo Realty & Development Co's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sumitomo Realty & Development Co Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Sumitomo Realty & Development Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sumitomo Realty & Development Co's Operating Margin % falls into.
Sumitomo Realty & Development Co Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sumitomo Realty & Development Co (FRA:RL2) has a Operating Margin % of 21.81% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sumitomo Realty & Development Co and its competitors. This is 11% below median its historical median of 24.40. Over the past decade, Sumitomo Realty & Development Co's Operating Margin % has ranged from 20.34 to 28.28. According to the industry distribution chart, Sumitomo Realty & Development Co ranks #510 out of 1745 companies in the Real Estate industry, placing it in the top 29.2%.
Is Sumitomo Realty & Development Co's Operating Margin % too high?
Sumitomo Realty & Development Co's current Operating Margin % of 21.81% is 11% below median its 10-year median of 24.40. Over the past 10 years, this metric has ranged from a low of 20.34 to a high of 28.28. The Real Estate industry median Operating Margin % is 13.21. Sumitomo Realty & Development Co's value of 21.81% is 65.1% above this industry median. Based on the distribution chart, Sumitomo Realty & Development Co ranks #510 out of 1745 companies in the Real Estate industry, which is above the industry midpoint. Overall, Sumitomo Realty & Development Co has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Realty & Development Co's Operating Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Sumitomo Realty & Development Co ranks #510 out of 1745 companies for Operating Margin %. This puts Sumitomo Realty & Development Co in the upper half of its industry. The industry median Operating Margin % is 13.21. Sumitomo Realty & Development Co's value of 21.81% is 65.1% above this benchmark. Historically, Sumitomo Realty & Development Co's own Operating Margin % has ranged from 20.34 to 28.28 over the past decade. While the company's 10-year median is 24.40 vs. the industry median of 13.21, Sumitomo Realty & Development Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Real Estate company?
The median Operating Margin % among Real Estate companies is 13.21, based on 1,745 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sumitomo Realty & Development Co's current Operating Margin % of 21.81% is 65.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Sumitomo Realty & Development Co and its competitors. For the Real Estate industry, the median Operating Margin % is 13.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Realty & Development Co's current Operating Margin % is 21.81%, which is 11% below median its own 10-year median of 24.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Realty & Development Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Realty & Development Co (FRA:RL2) is currently considered Modestly Overvalued. The stock's GF Value™ is €15.00, compared to a current price of €18.80 — trading 25.3% above its estimated fair value. The current Operating Margin % is 21.81%, which is 11% below median its 10-year median of 24.40 and 65.1% above the Real Estate industry median of 13.21. Sumitomo Realty & Development Co's overall GF Score™ is 78/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Sumitomo Realty & Development Co (FRA:RL2), the current Operating Margin % is 21.81% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sumitomo Realty & Development Co (FRA:RL2) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Realty & Development Co stock appears to be overvalued.
The current stock price of €18.80 is trading 25.3% above its estimated GF Value™ of €15.00.
GuruFocus considers Sumitomo Realty & Development Co to be Modestly Overvalued.
Key valuation signals for FRA:RL2:
Operating Margin %: 21.81% (11% below median its 10-year median of 24.40)
GF Value™: €15.00 vs. price of €18.80 (25.3% above fair value)
Industry Position: 65.1% above the Real Estate median (#510 of 1745)
No single metric tells the full story. See the FRA:RL2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Realty & Development Co Business Description
Sumitomo Realty & Development is a Japan-based company engaged in the real estate business. The company operates through four segments. The Completed Construction segment covers construction and renovation contracts for detached houses and condominiums. The Real Estate Distribution segment involves brokerage and sales agency services. The Real Estate Rental segment includes leasing and management of office buildings, condominiums, hotels, event halls, and commercial facilities. The Real Estate Sales segment focuses on condominiums and detached houses, and the Others segment covers businesses such as fitness clubs and restaurants. It generates the majority of its revenue from the Real estate rental segment.
78GF Score
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